VinFast Auto Ltd. (Nasdaq: VFS), a subsidiary of Vingroup JSC and Vietnam’s sole electric vehicle manufacturer, has announced its unaudited financial results for the second quarter ending June 30, 2024.
In Q2, VinFast delivered 13,172 electric vehicles (EVs), marking a 44% increase from the previous quarter and a 43% rise year-over-year. This brings total deliveries for the first half of 2024 to 22,348 vehicles, a remarkable 101% growth compared to the same period last year. The company generated $357 million in revenue for Q2, a 33% increase quarter-over-quarter and a 9% increase year-over-year.
Madam Thuy Le, Chairwoman of VinFast, stated, “Our commitment to contributing to a sustainable future remains steadfast. We are focused on being a vertically-integrated green mobility solutions provider, delivering high-quality and value-driven electric vehicles. With the VF 3’s rollout in Q3, we have successfully developed all seven of our e-SUV models.”
CFO Ms. Lan Anh Nguyen noted, “Q2 2024 aligned with our forecasts, driven largely by rising demand for our EVs in Vietnam. This growth is crucial for promoting EV adoption and green mobility in our home market, which lays a solid foundation for our ongoing success.”
Key Highlights:
- Q2 Deliveries: 13,172 EVs, up 44% QoQ and 43% YoY.
- Total Deliveries (H1 2024): 22,348 vehicles, up 101% YoY.
- Q2 Revenue: $357 million, up 33% QoQ and 9% YoY.
- Gross Loss: ($224 million), resulting in a gross margin of (62.7%), influenced by a $104 million impairment charge on Net Residual Value (NRV).
Expansion and Market Presence
VinFast is actively expanding its dealership network. As of August 31, it operates 155 showrooms across various markets, with approximately 70% being dealerships.
Vietnam:
VinFast has experienced its highest growth in Vietnam, driven by strong sales of the VF 5 model. The company has commenced deliveries of the VF 3 mini electric SUV.
North America:
In Q2, VinFast focused on establishing a presence in the U.S., enhancing brand awareness through its dealer network. The company now operates in eight states and has seen a 15% quarter-over-quarter growth in Canada, with a record delivery performance in July and August.
Southeast Asia:
VinFast has launched 15 showrooms in Indonesia and started delivering the VF e34 electric vehicle. The innovative battery subscription model has been pivotal in driving sales, achieving nearly 100% of total sales and orders in Indonesia and receiving positive feedback in the Philippines.
2024 Outlook
VinFast aims to deliver approximately 80,000 units in 2024, with Vietnam expected to be a significant revenue driver. The success of the VF 5 model, coupled with robust charging infrastructure and flexible battery subscription options, positions VinFast well in the Vietnamese EV market. While international markets face short-term challenges, they are essential to VinFast’s long-term growth strategy, reinforcing the company’s commitment to advancing sustainable electric mobility through innovation and expansion.
